Fiscal Policy

Fiscal Policy - Econ 4.3 Monday, March 15, 1999...

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Econ 4.3 Monday, March 15, 1999 Announcements: Exam #3 has been rescheduled and will be held on Wednesday, April 7th instead of April 2nd as originally scheduled. Lecture notes: Fiscal Policy Studies done show that Fiscal Policy has significant influence on economy Expenditure Multiplier larger than tax multiplier Discretionary Fiscal Policy : changes in taxes or spending that are the result of deliberate changes in government policy Fiscal Policy - active tool of management Primary Source of influening economy is actions of monetary policy Board of Governors of Federal Reserve System are not elected 12 Regional Federal Reserve Banks (Legally privatedly owned) Monetary Policy managed by board of governors of Federal Reserve Measuring GDP Natural Income Accounting Approach Overview GDP = C + I + G + (EX - IM) Value of each type of new final product is equal to quantity produced times market prices or pq Value of GDP, then, could be written as:
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This note was uploaded on 02/21/2008 for the course ECON 4.3 taught by Professor Fox during the Spring '99 term at Penn State.

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Fiscal Policy - Econ 4.3 Monday, March 15, 1999...

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